Top International Business Guide

Andalusian Minister for Economy, Finance and European Funds

Foreign investment looks to the south

Andalucía has become a unique hub for investment. In 2022 foreign investment reached an all-time high of 1.26 billion euros, which represents 30% more than in 2021. According to data from the Spanish Ministry of Industry, Commerce and Tourism, investment in Andalucía in the period from 2019 to 2022 grew to a total of 3.85 billion euros, a figure that practically doubles that of the 2015-2018 period (1.99 billion euros).

This record foreign investment comes hand-in-hand with a new record in exports (nearly 43 billion in 2022), proof that the Andalusian economy is fully international, open to the outside world and globally competitive.

This growth, in a time marked by a military conflict in Europe, just as we were overcoming the greatest global financial crisis ever known in times of peace, caused by a pandemic, is not by chance; it is the result of the policies developed by the Regional Government led by Juanma Moreno in Andalucía, a region that strongly supports businesses, offering political, institutional and financial stability, legal security and certainty, which is what investment needs. In short, building confidence and trust.

Many measures have been launched to achieve this transformation. But some of them have been critical, such as six successive tax reductions, which have turned Andalucía into the second most fiscally competitive region in Spain (having been one of the regions with the highest taxes), and an attractive region for investment. In order to favour investment, Andalucía has lowered all taxes and abolished the Impuesto de Patrimonio (wealth tax), which does not exist in any country in this area. Furthermore, the Regional Government has passed three administrative simplification decrees, with a fourth on the way, and, even more, is firmly committed to public-private collaboration.

Additionally, the recent launch of the Agency for Economic Transformation and Development (Andalucía TRADE) will boost economic growth, the promotion of investment, internationalisation, innovation, R&D and knowledge transfer. It is a flagship project for the Andalusian Government and a long-time demand from the business community: to have a one-stop shop which efficiently and productively provides all the support companies need.

One of the objectives of Andalucía TRADE is to maintain and improve even further the position of Andalucía as an attractive region for foreign direct investment, in line with the Andalusian Internationalisation Strategy 2021-2027. To achieve this, it is working to identify new projects, offering a wide range portfolio of tailor-made services throughout all project phases, monitoring the projects to guarantee their growth in Andalucía.

As well as attracting large industrial and logistics projects, from the Andalusian Government we want to extend the example of Malaga to the rest of Andalucía. Malaga is an international benchmark for technology. Top level multinationals such as Google, Vodafone, Oracle, Ericsson, Capgemini, Dekra, Keysight Technologies, EY and PWC are working from Malaga, where there is an interesting business ecosystem whose epicentre is the Malaga Tech Park, of which I am president as regional Minister for Economy, Finance and European Funds.

Andalucía supports investment and is already an outstanding example for other regions. We are going to continue our commitment to attract talent and innovative and technological projects that deliver differential value. We have the human resources and the best quality of life. Now we are adding a pioneer organisation that will provide investors with a single point of contact. Thanks to all of this, investors and technology are looking to the south.